RURAL RENTAL HOUSING DISPLACEMENT PREVENTION.

SEC. 1028. RURAL RENTAL HOUSING DISPLACEMENT PREVENTION. (a) Assistance Available to Borrower.— Section 502(c)(4)(B)(iv) of the Housing Act of 1949 (42 U.S.C. 1472(c)(4)(B)(iv)) is amended by striking “paragraphs (7) and (8) of section 515(b)” and inserting “paragraphs (1) and (2) of section 515(c)”. (b) Selection of Purchasers.— Section 502(c)(5)(B) of the Housing Act of 1949 (42 U.S.C. 1472(c)(5)(B)) is amended by adding at the end the following new clause: “(iii) Selection of qualified purchaser.— The Secretary shall promulgate regulations that establish criteria for selecting a qualified nonprofit organization or public agency to purchase housing and related facilities when more than 1 such organization or agency has made a bona fide offer. Such regulations shall give a priority to those organizations or agencies with the greatest experience in developing or managing low income housing or community development projects and with the longest record of service to the community.”. (c) Definitions of Nonprofit Organizations.— Section 502(c)(5)(I) of the Housing Act of 1949 (42 U.S.C. 1472(c)(5)(I)) is amended to read as follows: “(I) Definitions.— For purposes of this paragraph: “(i) Local nonprofit organization.—The term ‘local non-profit organization’ means a nonprofit organization that— “(I) has a broad based board reflecting various interests in the community or trade area; and 102 STAT. 3272 “(II) is a not-for-profit charitable organization whose principal purposes include developing or managing low income housing or community development projects. “(ii) Nonprofit organization.—The term ‘nonprofit organization’ means any private organization— “(I) no part of the net earnings of which inures to the benefit of any member, founder, contributor, or individual; “(II) that is approved by the Secretary as to financial responsibility; and “(III) that does not have among its officers or directorate persons or parties with a material interest (or persons or parties related to any person or party with such an interest) in loans financed under section 515 that have been prepaid.”.